23 de June 2015
Bogota enters the list of “Top 5” best cities for business in Latin America
Bogota continues to scale positions and moves up to the No. 5 spot in the Ranking of the Best Cities for Doing Business in Latin America 2015, published annually by AméricaEconomía. Ten years ago, the city ranked 13th.
Bogota now outranks Panama City and is the only Colombian city among the top 10.
This success mainly reflects its top score in the sub-indicator “Human Capital and Knowledge-based Economy”. The city also shines in the executive services area, which includes the variables and factors required by businesses and investors to conduct business
Best cities for business in Latin America
*Miami has been included for its commercial and business relations with the region.
Source: AméricaEconomía, 2015.
Bogota’s improved ranking reflects its star rating in the sub-indicator “Human Capital and Knowledge-based Economy,” which measures, among other factors, the quality of its universities, the programs they offer, and their publications.
The capital also scored higher in the “Business Services” indicator. Variables such as the number of ATMs, the number of schools with international baccalaureates, the presence of hospitals and clinics with the highest of quality standards, and the presence of internationally-renowned hotel chains, among other factors, indicate that the city offers entrepreneurs all the services required to conduct business. All these advantages, particularly in the context of Colombia’s economic dynamics, have helped boost Bogota’s rank.
Juan Gabriel Pérez, CEO of Invest in Bogota, says: “Nowadays, cities are competing to position themselves as attractive places for investment, and once again, Bogota is a leader in both the region and within the country as a hub for business and a is preferred destination for foreign investment. The city offers investors a favorable business climate, together with a thriving industry of value-added services, a skilled workforce of 4.5 million people, and a strategic geographical location from which they can manage their businesses both in the country and throughout Latin America."
Bogotá continues to lead all Colombian cities, surpassing Medellin, Cali, Cartagena, and Barranquilla, which ranked 15th, 21st, 25th, and 29th, respectively.
The AméricaEconomía ranking is based on same the methodology and calculations used in the Urban Competitiveness Index (Índice de Competitividad Urbana - ICUR), which analyzes the quantitative and perceptual variables that companies and executives consider when taking the decision to commence operations in a given city.
The ICUR is a complex tool used to rank the cities considered in terms of their capacity/potential for business. The ICUR consists of eight dimensions, each focusing on a certain number of variables that combine to describe specific attribute areas that influence a city’s business attractiveness. Variables such as the relevant country’s macroeconomic and socio-political structure, the local economy’s dynamism and strength, business services, quality of life, security, physical and digital connectivity, intellectual capital, and environmental sustainability, among others, are all assessed.
Specifically, these dimensions are as follows:
Social and political framework (15%):
Consists of indicators and variables concerning political governance, institutional strength, security, social development, and legal certainty.
Economic framework and dynamism (25%):
Includes indicators and variables on wealth creation, attracting investment, economic stability, and characterization of basic goods, labor, and financial markets.
Business services (10%):
Indicators and variables include installation costs and business system per se, quality and access to IT (telephone and internet) and banking services, and the institutional quality of local governments.
Executive services (10%):
Covers indicators and variables pertaining to the cost and quality of life, including access to banking services for individuals and the quality of basic services such as educational services for young children, hospitals, hotels, and restaurants.
Infrastructure and physical connectivity (10%):
Incorporates variables and indicators regarding the extent and quality of the land, sea, and air mobility of people and commercial goods, both domestically and internationally as well as complex indicators of investment and development of public and private infrastructure.
Human capital (10%):
Uses indicators and variables covering the accreditation and quantification of higher education offerings to rate the availability of a skilled local labor force, with an emphasis on university education related to business and innovation capital.
Environmental sustainability (5%):
Incorporates variables and dimensions that account for the following. First, the quality of natural resources that determine the city’s health such as air pollution are accounted for. Second, the city’s proportion of non-polluting public transport is considered. Third, it estimates the impact that the city wields over the global environmental situation, thus calculating the level of ecological responsibility expressed by the agglomeration.
Brand power (15%):
Based on the “Survey of Business and Quality of Life in Latin American Cities,” applied in May 2015 to AméricaEconomía’s reader base.